Step-By-Step Revocable Living Trusts in California
In California, one of the main reasons people establish a revocable living trust is to allow their estate to avoid probate when they die. A living trust allows you, the settlor, to arrange for the distribution of your assets to your beneficiaries in a manner that is private and does not involve probate court. During your lifetime, you are the trustee of the trust. When you die, your named successor distributes the property within the trust based upon your instructions.
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Instructions
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Purchase a Revocable Living Trust form, either online or through a local stationary store. If purchasing online, make sure that the form is legal in the state of California.
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Write a "Description of Property." This is a list of all of your assets, like real estate, jewelry and bank accounts, which will be, officially, owned by the trust.
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Write a "Schedule of Beneficiaries." This is a list of people you want to receive your assets when you die. Specify which person will get which asset and how much of it. For instance, if you want your daughter, "Jane Smith," to receive your 2006 Toyota RAV4 you would write: Jane Smith, 2006 Toyota RAV4, 100%.
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Choose a name for your trust. Transfer all titled property into the name on the trust. For instance, if you own a home, you must change the ownership from yourself to your trust. If you own stock or have bank accounts in your name, they also must be transferred into the name of the trust. In the above example, you would have to re-title your car.
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Designate the Settlor of the trust. This will be you because you are the person "settling" property into the trust. You will also need to assign a Trustee, the person who controls the assets within the trust. This can also be you, or you can select a different person.
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Arrange for three witnesses to meet with you, the trustee if there is a separate trustee and a notary public to sign the paperwork legally.
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Tips & Warnings
Consider using an estate attorney. A trust is a very important document and an estate attorney will make sure that your wishes for the distribution of your estate upon your death is prepared correctly.
References
- Photo Credit signing a contract image by William Berry from Fotolia.com
